A promising field of housing finance innovation is digital approaches to assessing the creditworthiness of low-income borrowers, based on the application of machine learning and artificial intelligence to ‘alternative’ customer data. These reduce the risk of lending to underserved customers, many of whom work in the informal sector and lack formal credit histories. This article introduces and explores the emerging application of digital credit scoring technologies to affordable housing in India, through the practitioner lens of Syntellect – a Mumbai-based fintech firm – and their investor Reall, an innovator in climate-smart affordable housing. Syntellect has developed proprietary software called RightProfile – a unique customer profiler that caters to the unbanked, new to banking, and new to credit segment with a focus on informal micro-entrepreneurs. The article shares Syntellect and Reall’s experience to date, situating these within broader affordable housing trends and reflecting on the transferability of RightProfile outside India.

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Bah, E.M., Faye, I. and Zekebweliwai, G.F. (2018) Housing Market Dynamics in Africa, Palgrave Macmillan, London.

Becker, K. (2004) Fact Finding Study: The Informal Economy, Sida, Stockholm.

Bhanot, D., Khaire, M., Kalro, A. and Jha, S.K. (2020) ‘Affordable housing finance companies in India: how do they “differently” serve the underserved?’, Housing Studies 35: 3 <https://doi.org/10.1080/02673037.2019.1614538>.

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D’Souza, R. (2019) Housing Poverty in Urban India: The Failures of Past and Current Strategies and the Need for a New Blueprint [online], Observer Research Foundation, Delhi <https://www.orfonline.org/research/housing-poverty-in-urban-india-the-failures-of-past-and-current-strategies-and-the-need-for-a-new-blueprint-48665> [accessed 3 June 2021].

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Financial Sector Deepening Kenya (FSD Kenya) (2019) Financing Kenya: 2020 Hindsight for Vision 2030, FSD Kenya, Nairobi.

Findexable (2019) The Global Fintech Index 2020: City Rankings Report, Findexable, London.

GSMA (2020) State of the Mobile Money Industry in Africa: 2019, GSMA, London.

Habitat for Humanity (2016) ‘Creating access to affordable housing financing in Sub-Saharan Africa’ [online] <https://www.habitat.org/emea/stories/creating-access-affordable-housing-financing> [accessed 3 June 2021].

Habitat for Humanity (2021) MicroBuild Fund: Annual Report FY2020, Habitat for Humanity International, Atlanta, GA.

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Jones, A. and Stead, L. (2020) ‘Can people on low incomes access affordable housing loans in urban Africa and Asia? Examples of innovative housing finance models from Reall’s global network’, Environment and Urbanization 32(1): 155–74 <https://doi.org/10.1177%2F0956247819899557>.

Jones, A., Stead, L. and Livesley, L. (2020) ‘Partnership and financial innovation: Reall and unlocking affordable housing markets in urban Africa and Asia’, Housing Finance International, Autumn 2020 [online] <https://pubdocs.worldbank.org/en/354571603295526801/HFI-Autumn-2020-Reall-article.pdf> [accessed 3 June 2021].

McKinsey Global Institute (2014) A Blueprint for Addressing the Global Affordable Housing Challenge, McKinsey, Washington, DC.

McKinsey Global Institute (2019) Digital India: Technology to Transform a Connected Nation, McKinsey, Washington, DC.

Medina, L., Jonelis, A.W. and Cangul, M. (2017) The Informal Economy in Sub-Saharan Africa: Size and Determinants, International Monetary Fund, Washington, DC.

Prabhakar, T. (2020) A New Era for Credit Scoring: Financial Inclusion, Data Security, and Privacy Protection in the Age of Digital Lending, University of California Press, Berkeley, CA.

PwC India (2019) A Wider Circle: Digital Lending and the Changing Landscape of Financial Inclusion, PwC India, Delhi.

Reall (2020) Impact Report Briefing: Key Findings on Quality of Life in Reall’s Affordable Homes [online] <https://www.reall.net/wp-content/uploads/2020/10/Impact-Report-Briefing.pdf> [accessed 3 June 2021].

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Telecom Regulatory Authority of India (TRAI) (2020) Highlights of Telecom Subscription Data as on 31st October [online], TRAI, Delhi <https://www.trai.gov.in/sites/default/files/PR_No.101of2020_0.pdf> [accessed 3 June 2021].

United States Agency for International Development (USAID) (2019) India Digital Financial Inclusion: Journey Map Report, USAID, Washington, DC.

World Bank (2018) The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution, World Bank, Washington, DC.

World Bank (2021) ‘The World Bank in India’ [online] <https://www.worldbank.org/en/country/india/overview> [accessed 3 June 2021].

Zia, G., Agrawal, A., Patel, B., Mehrotra, S., Sinha, A., Shetty, N., Sarkar, S., Bhoir, M. and Bhowmick, T. (2019) Brick by Brick: Moving towards Housing for All [online], RICS and Knight Frank <https://www.rics.org/globalassets/rics-website/media/news/press-releases/brick-by-brick-report/> [accessed 3 June 2021].

Zhang, X.Q. and Ball, M. (2016) ‘Housing the planet: evolution of global housing policies’, Habitat International 54(3): 161–5 <https://doi.org/10.1016/j.habitatint.2015.11.028>.

Badev, A., Beck, T., Vado, L. and Walley, S. (2014) Housing Finance Across Countries: New Data and Analysis, World Bank, Washington, DC.

Bah, E.M., Faye, I. and Zekebweliwai, G.F. (2018) Housing Market Dynamics in Africa, Palgrave Macmillan, London.

Becker, K. (2004) Fact Finding Study: The Informal Economy, Sida, Stockholm.

Bhanot, D., Khaire, M., Kalro, A. and Jha, S.K. (2020) ‘Affordable housing finance companies in India: how do they “differently” serve the underserved?’, Housing Studies 35: 3 <https://doi.org/10.1080/02673037.2019.1614538>.

Business World (2019) ‘For the entrepreneurs’, Business World, 29 June, Delhi <http://www.businessworld.in/article/For-The-Entrepreneurs/20-02-2019-167384/> [accessed 3 June 2021].

Centre for Affordable Housing Finance in Africa (CAHF) (2020) 2020 Yearbook – Housing Finance in Africa: A Review of Africa’s Housing Finance Markets, pp. 139–42, CAHF, Johannesburg.

Chiquier, L. and Lea, M. (2009) ‘Introduction’, in L. Chiquier and M. Lea (eds.), Housing Finance Policy in Emerging Markets, pp. xxiv–xliv, World Bank, Washington, DC.

Desai, A. (2014) ‘Financing Affordable Housing for the Low-Income in Urban India’, Social Impact Research Experience, 29 [online] <https://repository.upenn.edu/sire/29/> [accessed 3 June 2021].

D’Souza, R. (2019) Housing Poverty in Urban India: The Failures of Past and Current Strategies and the Need for a New Blueprint [online], Observer Research Foundation, Delhi <https://www.orfonline.org/research/housing-poverty-in-urban-india-the-failures-of-past-and-current-strategies-and-the-need-for-a-new-blueprint-48665> [accessed 3 June 2021].

Economic Times (2015) ‘PM Narendra Modi’s ‘Housing for All by 2022’ scheme gets government nod’, Economic Times, 18 June, Delhi <https://economictimes.indiatimes.com/news/economy/policy/pm-narendra-modis-housing-for-all-by-2022-scheme-gets-government-nod/articleshow/47713780.cms> [accessed 3 June 2021].

Ferguson, B., Van Lindert, P. and Smets, P. (2014) ‘The new political economy of affordable housing finance and urban development’, in J. Bredenoord et al. (eds.), Affordable Housing in the Global South: Seeking Sustainable Solutions, pp. 40–54, Routledge, Abingdon.

Financial Sector Deepening Kenya (FSD Kenya) (2019) Financing Kenya: 2020 Hindsight for Vision 2030, FSD Kenya, Nairobi.

Findexable (2019) The Global Fintech Index 2020: City Rankings Report, Findexable, London.

GSMA (2020) State of the Mobile Money Industry in Africa: 2019, GSMA, London.

Habitat for Humanity (2016) ‘Creating access to affordable housing financing in Sub-Saharan Africa’ [online] <https://www.habitat.org/emea/stories/creating-access-affordable-housing-financing> [accessed 3 June 2021].

Habitat for Humanity (2021) MicroBuild Fund: Annual Report FY2020, Habitat for Humanity International, Atlanta, GA.

Housing Finance Information Network (HOFINET) (2021) ‘Countries’ [online] <http://hofinet.org/countries/index.aspx> [accessed 3 June 2021].

Jones, A. and Stead, L. (2020) ‘Can people on low incomes access affordable housing loans in urban Africa and Asia? Examples of innovative housing finance models from Reall’s global network’, Environment and Urbanization 32(1): 155–74 <https://doi.org/10.1177%2F0956247819899557>.

Jones, A., Stead, L. and Livesley, L. (2020) ‘Partnership and financial innovation: Reall and unlocking affordable housing markets in urban Africa and Asia’, Housing Finance International, Autumn 2020 [online] <https://pubdocs.worldbank.org/en/354571603295526801/HFI-Autumn-2020-Reall-article.pdf> [accessed 3 June 2021].

McKinsey Global Institute (2014) A Blueprint for Addressing the Global Affordable Housing Challenge, McKinsey, Washington, DC.

McKinsey Global Institute (2019) Digital India: Technology to Transform a Connected Nation, McKinsey, Washington, DC.

Medina, L., Jonelis, A.W. and Cangul, M. (2017) The Informal Economy in Sub-Saharan Africa: Size and Determinants, International Monetary Fund, Washington, DC.

Prabhakar, T. (2020) A New Era for Credit Scoring: Financial Inclusion, Data Security, and Privacy Protection in the Age of Digital Lending, University of California Press, Berkeley, CA.

PwC India (2019) A Wider Circle: Digital Lending and the Changing Landscape of Financial Inclusion, PwC India, Delhi.

Reall (2020) Impact Report Briefing: Key Findings on Quality of Life in Reall’s Affordable Homes [online] <https://www.reall.net/wp-content/uploads/2020/10/Impact-Report-Briefing.pdf> [accessed 3 June 2021].

Reall (2021) Affordable Housing and Sustainable Communities in Urban Africa and Asia [online] <https://www.reall.net/wp-content/uploads/2021/03/Affordable-Housing-and-Sustainable-Communities.pdf> [accessed 3 June 2021].

Telecom Regulatory Authority of India (TRAI) (2020) Highlights of Telecom Subscription Data as on 31st October [online], TRAI, Delhi <https://www.trai.gov.in/sites/default/files/PR_No.101of2020_0.pdf> [accessed 3 June 2021].

United States Agency for International Development (USAID) (2019) India Digital Financial Inclusion: Journey Map Report, USAID, Washington, DC.

World Bank (2018) The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution, World Bank, Washington, DC.

World Bank (2021) ‘The World Bank in India’ [online] <https://www.worldbank.org/en/country/india/overview> [accessed 3 June 2021].

Zia, G., Agrawal, A., Patel, B., Mehrotra, S., Sinha, A., Shetty, N., Sarkar, S., Bhoir, M. and Bhowmick, T. (2019) Brick by Brick: Moving towards Housing for All [online], RICS and Knight Frank <https://www.rics.org/globalassets/rics-website/media/news/press-releases/brick-by-brick-report/> [accessed 3 June 2021].

Zhang, X.Q. and Ball, M. (2016) ‘Housing the planet: evolution of global housing policies’, Habitat International 54(3): 161–5 <https://doi.org/10.1016/j.habitatint.2015.11.028>.

Badev, A., Beck, T., Vado, L. and Walley, S. (2014) Housing Finance Across Countries: New Data and Analysis, World Bank, Washington, DC.

Bah, E.M., Faye, I. and Zekebweliwai, G.F. (2018) Housing Market Dynamics in Africa, Palgrave Macmillan, London.

Becker, K. (2004) Fact Finding Study: The Informal Economy, Sida, Stockholm.

Bhanot, D., Khaire, M., Kalro, A. and Jha, S.K. (2020) ‘Affordable housing finance companies in India: how do they “differently” serve the underserved?’, Housing Studies 35: 3 <https://doi.org/10.1080/02673037.2019.1614538>.

Business World (2019) ‘For the entrepreneurs’, Business World, 29 June, Delhi <http://www.businessworld.in/article/For-The-Entrepreneurs/20-02-2019-167384/> [accessed 3 June 2021].

Centre for Affordable Housing Finance in Africa (CAHF) (2020) 2020 Yearbook – Housing Finance in Africa: A Review of Africa’s Housing Finance Markets, pp. 139–42, CAHF, Johannesburg.

Chiquier, L. and Lea, M. (2009) ‘Introduction’, in L. Chiquier and M. Lea (eds.), Housing Finance Policy in Emerging Markets, pp. xxiv–xliv, World Bank, Washington, DC.

Desai, A. (2014) ‘Financing Affordable Housing for the Low-Income in Urban India’, Social Impact Research Experience, 29 [online] <https://repository.upenn.edu/sire/29/> [accessed 3 June 2021].

D’Souza, R. (2019) Housing Poverty in Urban India: The Failures of Past and Current Strategies and the Need for a New Blueprint [online], Observer Research Foundation, Delhi <https://www.orfonline.org/research/housing-poverty-in-urban-india-the-failures-of-past-and-current-strategies-and-the-need-for-a-new-blueprint-48665> [accessed 3 June 2021].

Economic Times (2015) ‘PM Narendra Modi’s ‘Housing for All by 2022’ scheme gets government nod’, Economic Times, 18 June, Delhi <https://economictimes.indiatimes.com/news/economy/policy/pm-narendra-modis-housing-for-all-by-2022-scheme-gets-government-nod/articleshow/47713780.cms> [accessed 3 June 2021].

Ferguson, B., Van Lindert, P. and Smets, P. (2014) ‘The new political economy of affordable housing finance and urban development’, in J. Bredenoord et al. (eds.), Affordable Housing in the Global South: Seeking Sustainable Solutions, pp. 40–54, Routledge, Abingdon.

Financial Sector Deepening Kenya (FSD Kenya) (2019) Financing Kenya: 2020 Hindsight for Vision 2030, FSD Kenya, Nairobi.

Findexable (2019) The Global Fintech Index 2020: City Rankings Report, Findexable, London.

GSMA (2020) State of the Mobile Money Industry in Africa: 2019, GSMA, London.

Habitat for Humanity (2016) ‘Creating access to affordable housing financing in Sub-Saharan Africa’ [online] <https://www.habitat.org/emea/stories/creating-access-affordable-housing-financing> [accessed 3 June 2021].

Habitat for Humanity (2021) MicroBuild Fund: Annual Report FY2020, Habitat for Humanity International, Atlanta, GA.

Housing Finance Information Network (HOFINET) (2021) ‘Countries’ [online] <http://hofinet.org/countries/index.aspx> [accessed 3 June 2021].

Jones, A. and Stead, L. (2020) ‘Can people on low incomes access affordable housing loans in urban Africa and Asia? Examples of innovative housing finance models from Reall’s global network’, Environment and Urbanization 32(1): 155–74 <https://doi.org/10.1177%2F0956247819899557>.

Jones, A., Stead, L. and Livesley, L. (2020) ‘Partnership and financial innovation: Reall and unlocking affordable housing markets in urban Africa and Asia’, Housing Finance International, Autumn 2020 [online] <https://pubdocs.worldbank.org/en/354571603295526801/HFI-Autumn-2020-Reall-article.pdf> [accessed 3 June 2021].

McKinsey Global Institute (2014) A Blueprint for Addressing the Global Affordable Housing Challenge, McKinsey, Washington, DC.

McKinsey Global Institute (2019) Digital India: Technology to Transform a Connected Nation, McKinsey, Washington, DC.

Medina, L., Jonelis, A.W. and Cangul, M. (2017) The Informal Economy in Sub-Saharan Africa: Size and Determinants, International Monetary Fund, Washington, DC.

Prabhakar, T. (2020) A New Era for Credit Scoring: Financial Inclusion, Data Security, and Privacy Protection in the Age of Digital Lending, University of California Press, Berkeley, CA.

PwC India (2019) A Wider Circle: Digital Lending and the Changing Landscape of Financial Inclusion, PwC India, Delhi.

Reall (2020) Impact Report Briefing: Key Findings on Quality of Life in Reall’s Affordable Homes [online] <https://www.reall.net/wp-content/uploads/2020/10/Impact-Report-Briefing.pdf> [accessed 3 June 2021].

Reall (2021) Affordable Housing and Sustainable Communities in Urban Africa and Asia [online] <https://www.reall.net/wp-content/uploads/2021/03/Affordable-Housing-and-Sustainable-Communities.pdf> [accessed 3 June 2021].

Telecom Regulatory Authority of India (TRAI) (2020) Highlights of Telecom Subscription Data as on 31st October [online], TRAI, Delhi <https://www.trai.gov.in/sites/default/files/PR_No.101of2020_0.pdf> [accessed 3 June 2021].

United States Agency for International Development (USAID) (2019) India Digital Financial Inclusion: Journey Map Report, USAID, Washington, DC.

World Bank (2018) The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution, World Bank, Washington, DC.

World Bank (2021) ‘The World Bank in India’ [online] <https://www.worldbank.org/en/country/india/overview> [accessed 3 June 2021].

Zia, G., Agrawal, A., Patel, B., Mehrotra, S., Sinha, A., Shetty, N., Sarkar, S., Bhoir, M. and Bhowmick, T. (2019) Brick by Brick: Moving towards Housing for All [online], RICS and Knight Frank <https://www.rics.org/globalassets/rics-website/media/news/press-releases/brick-by-brick-report/> [accessed 3 June 2021].

Zhang, X.Q. and Ball, M. (2016) ‘Housing the planet: evolution of global housing policies’, Habitat International 54(3): 161–5 <https://doi.org/10.1016/j.habitatint.2015.11.028>.